Weak Productivity Growth Canada’s ‘Achilles Heel’: Bank of Canada Governor

Canada has a long-standing productivity problem that is quickly reaching “emergency levels,” says Bank of Canada Governor Tiff Macklem. The central bank’s top boss called for change during a June 24 speech to the Winnipeg Chamber of Commerce, saying it’s imperative that Canada address its ongoing struggle with low business investment. “Our Achilles heel is productivity,” Mr. Macklem said in his prepared remarks. “We have been very good at growing our economy by adding workers. We have been much less successful at increasing output per worker. And this is catching up with us.” While Canada managed to make up for its lagging productivity from 2000 to 2019 with strong labour force growth, the country’s gross domestic product (GDP) growth has been weak compared to the United States since the pandemic, he said....